This information relates to Hans Olaf Co.: 1. On April 5 purchased merchandise from D. DeVito Company
Question:
This information relates to Hans Olaf Co.:
1. On April 5 purchased merchandise from D. DeVito Company for \(\$ 18,000\), terms \(2 / 10\), net \(/ 30\), FOB shipping point.
2. On April 6 paid freight costs of \(\$ 900\) on merhandise purchased from D. DeVito Company.
3. On April 7 purchased equipment on account for \(\$ 26,000\).
4. On April 8 returned damaged merchandise to D. DeVito Company and was granted a \(\$ 3,000\) allowance.
5. On April 15 paid the amount due to D. DeVito Company in full.
\section*{Instructions}
(a) Prepare the journal entries to record these transactions on the books of Hans Olaf Co. using a periodic inventory system.
(b) Assume that Hans Olaf Co. paid the balance due to D. DeVito Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471169192
1st Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso